BP, SOCAR and NewMed to Explore Natural Gas Offshore Israel

SEATTLE (Oil Monster): A license deal was signed between Israel-based NewMed Energy, Azerbaijan's national oil and gas company SOCAR, and UK-based energy giant BP with the goal of exploring for natural gas offshore Israel. Israel is working to increase its domestic gas reserves and increase exports to international markets.

With the deal, BP enters the Israeli market. Additionally, it will be SOCAR's first expedition beyond Azerbaijan.

Zone I is operated by SOCAR, which owns 33.34% of the partnership; NewMed Energy and BP each own 33.33%.

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With the license, the consortium businesses will be able to conduct natural gas exploration in Cluster I, which is close to the Leviathan field. This area is 1,700 square kilometers in size and is situated in the Mediterranean, in the northern region of Israel's commercial seas. The firms anticipate that the first stage of the exploration project will involve geological and seismic studies. In the second phase, drilling will be done based on the survey data.

Together, the three businesses had bid for two offshore blocks in the fourth licensing round earlier in 2023. Additional licenses will be awarded in a fifth bidding round later this year, according to the Israeli Minister.

Israel's Energy and Infrastructure Minister Eli Cohen stated the arrival of SOCAR and BP is great news for the State of Israel.